Captiva Verde Industries Ltd ARDWF

Form 7 - Monthly Progress Report

[dsark]

FORM 7

MONTHLY PROGRESS REPORT
Name of Listed Issuer: Captiva Verde Industries Ltd. (the “Issuer” or the “Company”).

Trading Symbol: VEG
Number of Outstanding Listed Securities: 56,315,924 Date: March 4, 2016

Report on Business

1. Provide a general overview and discussion of the development of the Issuer’s business and operations over the previous month. Where the Issuer was inactive disclose this fact.

   During the month of February 2016, the Issuer continued with its USDA- certified organic vegetable operation and sold its USDA-certified organic products to a whole host of regional food companies. Management continued to focus on marketing 90% of the Issuer's sales secured by long- term produce purchase agreements.

   The Issuer's capabilities and food safety programs are essential in the fresh organic produce business. The Issuer has earned both the USDA organic certification and is also certified food safety compliant under the most stringent food safety certification programs in the industry; grading 99% and 100% in its final grades.

2. Provide a general overview and discussion of the activities of management.

   The Issuer is engaged in large-scale commercial organic farming operations in the USA (“US”). In this regard, among other duties, management has been undertaking the following:

   • -  Working with labour contractors to harvest the Issuer’s 604 acres of leased land in Arizona by weeding, irrigating, harvesting, and fertilizing the fields.

   • -  Working with various vendors for the ordering and/or delivery of fertilizers, seeds, irrigation pipes, and farming equipment.

   • -  Continuing the planting and harvesting on the Issuer’s 902-acre farm in Imperial Valley.

• -  Continued working with an established farmer under a Growing and Crop Management Agreement covering 902 acres in Imperial Valley, California.

• -  Negotiations for additional farming land in Arizona and Imperial Valley, California.

• -  Working on increasing long term contracts with customers.

3. Describe and provide details of any new products or services developed or offered. For resource companies, provide details of new drilling, exploration or production programs and acquisitions of any new properties and attach any mineral or oil and gas or other reports required under Ontario securities law.

   None.

4. Describe and provide details of any products or services that were discontinued. For resource companies, provide details of any drilling, exploration or production programs that have been amended or abandoned.

   None.

5. Describe any new business relationships entered into between the Issuer, the Issuer’s affiliates or third parties including contracts to supply products or services, joint venture agreements and licensing agreements etc. State whether the relationship is with a Related Person of the Issuer and provide details of the relationship.

   None.

6. Describe the expiry or termination of any contracts or agreements between the Issuer, the Issuer’s affiliates or third parties or cancellation of any financing arrangements that have been previously announced.

   None.

7. Describe any acquisitions by the Issuer or dispositions of the Issuer’s assets that occurred during the preceding month. Provide details of the nature of the assets acquired or disposed of and provide details of the consideration paid or payable together with a schedule of payments if applicable, and of any valuation. State how the consideration was determined and whether the acquisition was from or the dispositions was to a Related Person of the Issuer and provide details of the relationship.

   No material acquisitions.

8. Describe the acquisition of new customers or loss of customers.

   The Issuer has previously reported eight (8) customers who have been purchasing its organic produce. The issuer continues to supply these customers. 
   
    

9. Describe any new developments or effects on intangible products such as brand names, circulation lists, copyrights, franchises, licenses, patents, software, subscription lists and trade-marks.

   None.

10. Report on any employee hirings, terminations or lay-offs with details of anticipated length of lay-offs.

    David Pratt ceased to be the Chief Operating Officer of the Issuer effective February 6, 2016.

11. Report on any labour disputes and resolutions of those disputes if applicable.

    None.

12. Describe and provide details of legal proceedings to which the Issuer became a party, including the name of the court or agency, the date instituted, the principal parties to the proceedings, the nature of the claim, the amount claimed, if any, if the proceedings are being contested, and the present status of the proceedings.

    None.

13. Provide details of any indebtedness incurred or repaid by the Issuer together with the terms of such indebtedness.

    The Issuer incurs trade payable in the normal course of its business. For further details, see the Issuer’s periodic Financial Statements and accompanying management discussion and analysis filed on SEDAR and available under the Issuer’s SEDAR profile at www.SEDAR.com.